D.C. Current

No Time for Tax-Code Fixes

Legislators, particularly Democrats, are conspicuous by their absence at hearing on ways to thwart corporate tax inversions.

Take the icing off the cake! This essentially is what the U.S. Treasury says is the least that Congress should do to damp the latest corporate craze: inversions, a huge threat to the U.S. tax base.

To counter the threat, Congress could limit deductions for interest expenses for a foreign multinational's U.S. subsidiaries. It also could curb the ability of these newly formed multinationals to exploit loopholes that let them move undervalued intangible property from the U.S. to jurisdictions with low taxes on royalties and...